Home Equity Loan

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Related to Home equity loans: Home Equity Line of Credit

Home Equity Loan

A loan in which the one borrows against the value of one's home. That is, the collateral of a home-equity loan is one's house. The amount in these loans is generally the difference between the homeowner's equity in the house and the market value of the house. The homeowner receives the amount of the loan in a lump sum, and may use it to finance other purchases or ventures. If a home-equity loan is not paid off, the lender may take possession of and sell the house in order to pay for the loan; this can occur even if the homeowner continues to make payments on his/her mortgage. These loans generally have variable interest rates, which are nonetheless still lower than most other lines of credit. Home-equity loans are sometimes called second mortgages or equity loans. See also: Reverse mortgage.

Home equity loan.

A home equity loan, sometimes called a second mortgage, is secured by the equity in your home.

You receive the loan principal, minus fees for arranging the loan, in a lump sum. You then make monthly repayments over the term of the agreement, just as you do with your first, or primary, mortgage.

The interest rates on home equity loans are generally lower than the rates on unsecured loans. However, when you borrow against your equity you run the risk of foreclosure if you default on the loan, even if you have continued to make the required payments on your first mortgage.

Home Equity Loan

Same as Second Mortgage.

References in periodicals archive ?
One such article has been newly featured on their website, titled "Cash Out Refinance vs Home Equity Loan (Key Differences).
According to the ratings agency, monthly payments made by borrowers are set to rise in about two years because of the abundance of home equity loans made before the financial crisis and the terms generally associated with them.
Synopsis: Home equity borrowing has grown rapidly during recent years, with one in four homeowners reporting they have both a first mortgage and a home equity loan or line in a new Experian/Gallup poll.
If this interpretation is adopted, after due process, it would essentially prohibit all loans while sparing members the financial hardship of renegotiating mortgage of home equity loans made before the interpretation's effective date," Kelley said.
Comparative information on the use of home equity loans comes from a consumer survey conducted in 1988.
To measure accurately total consumer indebtedness, home equity loans must now be examined along with other forms of consumer installment debt.
Most fees on home equity loans and lines of credit are unavoidable, but it is still important to know about them, so you are not surprised when you are charged with them.
One of their new featured articles, "Cash Out Refinance vs Home Equity Loan (Key Differences)" highlights both cash out refinance and home equity line of credit advantages and disadvantages by going into detail about how both loans function.
To learn more about traditional home equity loans and to relate trends in these closed-end loans to
The eAppraisal tool helps consumers understand the value of a new home purchase or approximate the equity value of their existing home for a home equity loan.
The biggest 'pro' favoring a home equity loan is also the biggest 'con' associated with a refinance loan: Home equity loans have no closing costs, and that can mean a savings of hundreds - even thousands - of dollars compared to a cash-out refinance loan, which typically comes with all the same closing costs as a purchase mortgage.
E[acute accent]CCG, headquartered in San Francisco, CA, is a leading originator and servicer of home equity loans and lines of credit.

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